The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A monopolist produces at the minimum point of the average total cost curve in the long run.

Question

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-A monopolist produces at the minimum point of the average total cost curve in the long run.

Quizplus · Accepted Answer

A monopolist does not necessarily produce at the minimum point of the average total cost curve; instead, they produce where marginal revenue equals marginal cost, which may not coincide with the minimum point of the average total cost curve.

The Figure Given Below Shows the Cost and Revenue Curves